Providing elder law and estate planning services to the Walnut Creek, CA area. By elder law attorney, Michael J. Young

If you apply for Medi-Cal, the following list includes items that are generally exempted for qualification.

Your home is exempted if it is your principal residence. When applying for Medi-Cal, you will confirm on the application that you intend to return home after your stay in a skilled nursing facility. Medi-Cal requires a “subjective intent in writing to return home” to establish the home as an exempt asset. We have our clients execute an “intent to return home” form when we prepare their asset protection estate plans.

IRAs, 401k’s and other “qualified accounts” are exempt. The applicant however must be taking RMD’s or some amount of principal and interest on a periodic basis.

Not more than $2,000 in cash in the applicant’s name, which could include savings and checking accounts.

One care is exempt. If a couple owns two cars, we request an exemption for the more expensive car.

Term life insurance is exempt, but whole life insurance cannot have more than $1500 cash value.

Qualified or work related annuities are generally exempt. Other annuities may be exempt according to the Medi-Cal regulations.

Household furnishings are exempt.

This list is not exhaustive, and this information is not to be taken as legal advice. You are encouraged to see your elder law and probate attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com, we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, probate avoidance, wills, trusts, powers of attorney and probates. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

California does have gifting penalty rules. If the rules are not followed, you could create periods of ineligibility for Medi-Cal. If you follow the rules, Medi-Cal can pay for your stay in a skilled nursing facility, minus a share of the cost that you would pay. We have seen monthly bills of $10,000 and more from skilled nursing facilities.

You can gift any amounts of money or assets to your spouse without penalty, and she can keep up to $119,220, plus her IRAs and “exempt assets, and you can still be qualified for Medi-Cal.

If you gift your money and other non-exempt assets to someone other than your spouse, penalties may apply. The Medi-Cal application asks if you have made any gifts of non-exempt assets to someone besides your spouse, within the last 30 months. If you have, that amount is divided by $7,628. This is the amount that Medi-Cal pays monthly to nursing homes, minus the share of cost paid by the Medi-Cal recipient. It is called the Approximate Private Pay Rate, also known as the APPR.

So for instance, if you gave $40,000 to a grandchild for college tuition during January of 2014, you would not be eligible for for Medi-Cal for the next 5 months. You would not be eligible for the months January through May. You would be eligible however in June, 2014. To figure this out, divide the gifted amount of $40,000 by $7,628 and you will get 5.24, which rounded down is 5 months of ineligibility. You can also give the same amount of a gift on the same day to two children, and still only get 5 months of ineligibility. There are also other rules which can be employed which allow us to transfer monies over time, and thereby significantly reduce the number of months of ineligibility. The nice thing about these rules, as they presently exist, is that the penalty begins to run during the month that you made the gift.

When the Deficit Reduction Act (DRA) is adopted in California, which could be any time, there will be a five year look back instead of a 30 month look back penalty period for gifting. If we take the above example under the DRA rules, of the $40,000 gift to a grandchild, you would be ineligible for 5.24 months after you have entered the nursing home. If you gifted that amount to two people, you would have two periods of ineligibility of 5.24 months each. Also, under the DRA, the more liberal rules for gifting over time will be severely restricted.

As a result, you should proceed now with your long term care planning with your elder law attorney.

For additional information, you can contact your elder law attorney Michael J. Young. This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the law offices of Michael J. Young, 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA http://www.WalnutCreekElderLaw.com, 925-256-0298,lawyoung1@gmail.com, we practice elder law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with “Sustainable Estate Planning” TM, long term care planning, asset protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order to help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension Benefit.

As part of your long term care planning, you can also plan ahead for payment of funeral costs. You can put an amount you decide on into an “irrevocable final expense trust” which will pay for funeral and related costs at the time of your passing. The money you put into the final expense trust earns interest until the time the trust is used. If you pass away, your surviving loved ones do not start writing checks to the funeral home. They instead will take the final expense trust to any funeral home, and present it for payment for funeral and related services.

This part of pre-planning makes it much easier on your loved ones when you are gone, in that an amount for your funeral costs has been established, and the check has already been written and the funds are in the trust. There is no longer a need for your loved ones to scramble for funds for payment to the funeral home. The funds placed into the trust are protected by National Guarding Life (NGL), which uses a life insurance policy to fund the trust. With the use of the policy, the funds are not taxable upon your passing. The trust is also not subject to creditors’ claims because it is irrevocable. In addition, there is no legal fee for the creation of the trust, in that the trust is prepared by NGL.

The use of this type of trust can also be useful as part of Medi-Cal planning. When funded properly, the money in the trust will not be counted for Medi-Cal eligibility, and will not be available for recoupment from the state. There is a wide range of related services that the fund in the trust can also be used for, such as clergy honorarium, death certificates, musicians, flowers, memoriam celebration, transportation equipment and driver. Any funds that are not used will go to your named beneficiary.

For additional information, you can contact your elder law attorney Michael J. Young. This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the law offices of Michael J. Young, 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA http://www.WalnutCreekElderLaw.com, 925-256-0298,lawyoung1@gmail.com, we practice elder law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long term care planning, asset protection plans, special needs trusts, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order to help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension Benefit.

A number of our clients have “special needs” children who are presently receiving public benefits such as Supplemental Security Income and Medi-Cal. Other clients have “special needs” children who may need public benefits later in life. These public benefit programs have asset limits. Many times the children who are receiving public benefits become settled in their lifestyles regarding their living arrangements and working requirements. They usually do not want to lose these benefits and have their lifestyles disrupted by receiving an inheritance when their parents or grand parents pass away.

The parents and grandparents want to preserve the family wealth for all of their children and grandchildren, and do not want to disinherit a child. There is a remedy for this problem, and that is the creation of a supplemental special needs trust. This trust is written into the revocable living trust of the parents or grandparents as part of their estate plan. The share of the inheritance for the special needs child will go into the supplemental special needs trust upon the passing of the parents or grand parents for the benefit of the special needs child.

The overall goal of the supplemental special needs trust is to provide for the needs of the special needs child that are not being met by government benefits. The life of the special needs child can be enhanced by providing for better care, supplemental medical needs, supplemental therapies, recreational opportunities and other living enhancements. The wealth of the family can thereby be preserved, and when the special needs child passes away, his or her share of the inheritance can go to his children or to other family members.

The language in the supplemental special needs trust must be very specific in order for the child to keep the public benefits and yet benefit from the trust. First, the child must not be the trustee, and may not have legal access to the funds in the trust. Another person must be named as trustee. The terms of the trust direct that any distributions from the trust must be in compliance with the Supplemental Security Income, Medi-Cal or other government benefits regulations, so that benefits are not disrupted. The trust must also be drafted in such a way as to avoid any recoupment by Medi-Cal after the special needs child passes away. Your Walnut Creek Elder Law Attorney can advise you and help you in the preparation of a supplemental special needs trust.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

An individual can have any amount of Term Life Insurance, and still qualify for Medi-Cal. Term life insurance has been defined as life insurance that pays a benefit in the event of the death of the insured. So if you have a life insurance policy that pays $10,000 upon your death to your son for instance, that policy is exempt for qualification from Medi-Cal. Also, after the Medi-Cal applicant passes away, the $10,000 is paid to the beneficiary son, and there is no recovery by Medi-Cal. Problems can arise however, if the Medi-Cal recipeint receives a benefit from a life insurance policy, upon the death of his spouse for instance. This event could create immediate disqualification for the Medi-Cal recipient. As a result, when we do long term care planning, we take this possibility into account.

Whole life insurance policies are treated differently for Medi-Cal qualification. Whole life polices cannot have a total face value, or cash value, that exceeds $1500. The cash value of the policy that exceeds $1500 is counted as an asset toward Medi-Cal qualification. An individual can not have more than $2,000 in non-qualified funds in order to qualify for Medi-Cal. As a result, the cash value of the Medi-Cal applicant’s whole life policy in excess of $1500 will have to be reduced and then transferred in order to create qualification. If the applicant has lost mental capacity, the financial durable power of attorney, provided it has the appropriate language, would be relied upon to liquidate the policy and then to possibly gift the excess amounts, in order to create Medi-Cal qualification. All of these issues should be taken into account as part of long term care planning.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers and families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

die after having been on Medi-Cal, and your term life insurance policy pays a benefit in the amount of $10,000 to your son, for instance .

Wouldn’t it be nice to be able to predict the future for us Baby Boomers, and start planning for it! But we do know certain things about our future …

On average, 10,000 people are turning age 65 every day.

It is predicted that at least 70% of people over age 65 will need long-term care services.

Currently, the median cost of long-term care for one year in the United States is $83,950.00.

In 30 years, when the last of the Boomers reach age 65, the price of long-term care is expected to be at an all time high of $190,000 per year.

Currently, the average amount of time a person needs long term care is 2.7 years.

As my grandson would say, “OMG!”

As a senior estate planning attorney, and a Baby Boomer, we need to ask ourselves what we can do to plan for our long term care. GE Long Term Care Insurance conducted a study and found that nursing home costs are rising at a rate of 5% every year, outpacing inflation. With the rapidly growing elderly population this is the simple law of supply and demand.

So, what can we do to prepare for the second half of life? If you or your spouse are age 65 and one of you goes into a nursing home, do you have a spare $513,000 lying around to pay for your or your spouse’s care.

We still have Medi-Cal in California, which pays for the cost of a skilled nursing facility. The VA Aid & Attendance Pension benefit is still available to help pay for in home care and assisted living facility costs.

But you need to “get your ducks in a row” ahead of time to plan for qualification for these benefits. For starters, Baby Boomers are now taking advantage of modern asset protection and government benefits planning qualification techniques, which are incorporated into their estate planning documents. Also, one of our main goals is to preserve our homes for our children, without a lien for payback to Medi-Cal. With the modern language in your estate planning documents, if you become incapacitated, your spouse or loved one can follow through with qualification and asset protection techniques under the Medi-Cal and VA regulations.

This information is not to be taken as legal advice, and you are encouraged to see your senior estate planning attorney before attempting any of these techniques.

At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers and families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

You should get your “Ducks In A Row” now. Many of us Baby Boomers, born between 1946 and 1964, have helped to take care of our elderly parents. Both of my parents are gone now, but my siblings and I helped our parents through their “Elder Care Journey,” which I talk about in my workshops. We helped our parents, the best that we could, with issues concerning their illnesses, memory issues, trips to and from the hospital and trips to and from nursing homes. We helped to get in-home-care for them, and helped to get them into assisted living facilities and a board and care home. Finally, both parents passed away while on hospice.

I remember my brother Charles saying to me early on regarding helping our parents, that “This isn’t getting any easier.” And I remember thinking to myself that it won’t be that much longer, in the scheme of things, before my wife and I, who are both Baby Boomers, could need care. We want to make things as easy as possible for our children to help care for us.

The first thing Baby Boomers should do is check their estate planning documents, including their revocable living trust and financial durable powers of attorney, to be sure that the proper asset protection and government benefits language is in the documents. The boiler plate language in the majority of estate planning documents will not help in these areas if you lose mental capacity. If the language is not there, and you lose mental capacity, your family may have to resort to going to court to reform your documents, which can be costly.

With proper long term care planning, which starts with your estate planning documents, Medi-Cal could be accessed to pay for nursing home stays if you use up your Medi-Care days. And, there techniques you can use to protect the home from a Medi-Cal lien, which can be specified in your estate planning documents. In addition, the VA Aid and Attendance Pension Benefit is there to help older war time veterans, and this benefit can be used to help pay for in home care and assisted living facility costs. Proper language in your estate planning documents will make it much easier for your children to follow through with your care and to access these benefits, especially if you lose your mental capacity.

At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney regarding any planning.

People are living longer and are enjoying healthier lives for longer periods of time. George Burns, who lived to be 100 said, “I’m going to stay in show business until I’m the last one left!” I see attorney friends at the courthouse who are over 80. When I talk to them, I discover that they have no intention of retiring. Mickey Mantle once said, “If I knew I was going to live this long, I’d have taken better care of myself.” This is a funny line, but by exercising, we can expect to live long and productive lives.

A report by the American College of Sports Medicine says that by the year 2030, there will be more than 70,000,000 people in this country who are over the age of 65. And, the fastest growing segment of the population will be people who are over age 85! But, we want to be healthy as we grow older.

Walking has been reported to be the easiest exercise to do, which also has the greatest benefits. According to a report by the Mayo Clinic, you can literally walk your way to fitness and good health. Several reports say that by merely walking 45 minutes per day, you can maintain a healthy weight, control blood pressure and type 2 diabetes, strengthen your skeletal system and improve your coordination and balance. Walking also helps to elevate your mood.

You can easily create a walking routine. My wife walks around the Lafayette reservoir with her friends two times a week. They don’t go around the reservoir once, but two times! I am trying to catch up with her with my walking routine, by walking to downtown Walnut Creek and back for lunch every day. If I stretch it, I can have a 45 minute round trip walk. I believe that in the future, I will be one of the attorneys at the court house who is over 80, and in great shape!

At the Law Offices of Michael J. Young, located in Walnut Creek, Ca, we talk about the Elder Care Journey with our clients, and in our workshops. Over the years, we have helped many families, and we can help you too with long-term care planning, asset protection plans, assistance with Medi-Cal and the VA, comprehensive estate planning, wills, trusts and powers of attorney.

Michael J. Young, Attorney at Law, is an estate planning attorney and Medi-Cal qualification attorney in Walnut Creek, CA. For additional information, please visit our website at www.WalnutCreekElderLaw.comLawYoung1@Gmail.com Our address is at 1931 San Miguel Dr., Suite 220, Walnut Creek, CA 94596. 925-256-0298. Mr. Young serves Contra Costa and Alameda Counties, including the cities of Alamo, Walnut Creek, Concord, Danville, Pleasant Hill, Brentwood, Antioch, Clayton, etc. Mr. Young advises clients regarding Medi-Cal, Probates, Probates with Real Estate, Medi-Cal, nursing home costs, asset protection, the VA Aid and attendance pension benefit, and long term care planning. Mr. Young is an Elder Law Attorney and Probate Attorney with offices in Walnut Creek, CA. Walnut Creek Elder Law Attorney, Walnut Creek Probate Attorney. Senior Law Attorney. Walnut Creek Medi-Cal attorney. Mr. Young is certified by the VA and is a member of the National Academy of Elder Law Attorneys (NAELA).

If you are a resident of a nursing home, you have the right to access your medical records. You can request copies of your medical records, and the nursing home has two business days to give you a copy of your records. Your request should be made in writing. You will have to pay for the cost of the copies to the nursing home if asked, but you cannot be charged more than $.25 per page, or $.50 per page if the records are copied from microfilm. The nursing home can also ask you for a reasonable sum from you for clerical costs. You may also ask for copies of your financial records from the nursing home, with the same copy costs.

In addition, the persons you have designated in your HIPAA statement or in your health care power of attorney may request copies of your nursing home records for you. HIPAA stands for the “Health Insurance Portability and Accountability Act.” You can also sign a release form allowing others the right to request your nursing home records on your behalf. The nursing home may want to delay the process of providing copies of the documents to you, but they must comply under the law, within two working days.

Most nursing homes are cooperative in this regard, but it seems that few people are aware that they may ask for their records. If you are the resident of a nursing home who is asking for your records, your authority is under a Federal Code, and if the request is made by your representative, it would be under a California State Code. The within information is not to be taken as legal advice, but only as general information. You should consult with your Elder Law Attorney or Medi-Cal attorney in Walnut Creek, CA for additional information.

Michael J. Young, Attorney at Law, is an estate planning attorney and Medi-Cal qualification attorney in Walnut Creek, CA. For additional information, please visit our website at www.WalnutCreekElderLaw.comLawYoung1@Gmail.com Our address is at 1931 San Miguel Dr., Suite 220, Walnut Creek, CA 94596. 925-256-0298. Mr. Young serves Contra Costa and Alameda Counties, including the cities of Alamo, Walnut Creek, Concord, Danville, Pleasant Hill, Brentwood, Antioch, Clayton, etc. Mr. Young advises clients regarding Medi-Cal, Probates, Probates with Real Estate, Medi-Cal, nursing home costs, asset protection, the VA Aid and attendance pension benefit, and long term care planning. Mr. Young is an Elder Law Attorney and Probate Attorney with offices in Walnut Creek, CA. Walnut Creek Elder Law Attorney, Walnut Creek Probate Attorney. Senior Law Attorney. Walnut Creek Medi-Cal attorney. Mr. Young is certified by the VA and is a member of the National Academy of Elder Law Attorneys (NAELA).

You should get your ducks in a row long before a crisis occurs, especially where your health and finances are concerned. Many of our clients come to see us when a crisis is occurring. For instance, their spouse or loved one is in the hospital or has just entered a skilled nursing facility. At this stage the planning is usually more difficult, and we may be facing memory issues of the ill person. It may also be more difficult to preserve the home as a legacy for the clients’ beneficiaries. The home is many times our clients’ largest asset.

As part of long term care planning, we plan how various stages of care will be paid for and determine what assets and resources are available. We proceed to get our ducks in a row to protect assets. We also line our ducks up for obtaining Medi-Cal to pay for the skilled nursing facility and the VA Aid & Attendance Pension Benefit to pay for in home care or an assisted living facility. Gifting and spending issues for Medi-Cal and VA are considered. The longer we have to do long term care planning, the easier it is for all concerned. In addition, your peace of mind can be assured earlier on.

FAMILY DYNAMICS: When we are able to do pre-planning for our clients, we can better take into account issues concerning family dynamics. We need to know which family members are helping the ill person, and who can be relied upon when help is needed. We can offer suggestions for the well spouse for her care for the ill spouse when he comes home. We will be better able to find out if there is serious infighting and resentments among family members. When a crisis occurs, these dynamics become intensified.

LEGAL DOCUMENTS: Are the legal documents up to date? If they are, you are in a tiny minority. If you have not gone to an elder law attorney in the last several years, your documents are probably not up to date. There is specialized language that can be utilized for asset protection and for government benefits planning in the various documents. For instance, if we want to preserve the home and protect it from a Medi-Cal lien, and the ill person has severe memory issues, we may not be able to proceed to transfer the home to the well spouse or a child without going to court. Most revocable living trusts and financial durable powers of attorney do not contain this specialized asset protection language.

Pre-planning will also allow us to discuss any changes that may be needed in the trust, will, financial durable power of attorney and other estate planning documents. Family dynamics are always changing with the occurrence of deaths, divorces, children who are themselves in need of care, second marriages, etc.